cobb_douglas_2 {Recon}

2 inputs Cobb-Douglas Model

Description

This function allows you to compute a Cobb-Douglas production/ utility function with two inputs/goods.

Usage

cobb_douglas_2(x, TFP = 1, alpha = 0.5, beta = 1 - alpha)

Arguments

x

is a data frame with two columns.

TFP

is the constant of the model. Defaults to 1.

alpha

is the first input's elasticity. Defaults to a random number between 0 and 1, rounded to two digits.

beta

is the second input's elasticity. Defaults to 1 - alpha.

Value

Returns a list object with compued y and elasticities.

Author(s)

Pedro Cavalcante Oliveira, Department of Economics, Fluminense Federal University

Examples

x <- c(3, 4, 5)
y <- c(1, 4, 2)

data <- data.frame(x = x, y = y)

cobb_douglas_2(data)